Cardano, Ripple’s XRP, and VeChain sank after Bitcoin’s price crash impacted the altcoin market
XRP has dropped the most over the past week with 38% in losses, while Cardano is down 27% since its weekly top. VeChain is also in the red, trading around 5% off its peak this past week.
While a rebound for BTC is likely uplift these altcoins, one analyst predicts more pain for the broader altcoin market.
Alts are more volatile than $BTC. If $BTC saw SEVEN 20-40% drops in 2017 on the road to 20k, 50% or more drops on alts should be expected. I know it sounds absolutely and positively insane, but it's normal. You'll get used to it 🙂
— Credible Crypto (@CredibleCrypto) April 23, 2021
Cardano has traded lower since peaking at $1.55 on 14 April. The downward flip has seen the cryptocurrency break below major support levels at the 20-day EMA ($1.23) and 50 SMA ($1.20).
Although bulls have tried to buy the dip, bears have been relentless and pushed as low as $0.92.
The short term remains negative as suggested by the sloping divergence of the RSI and the moving averages.
If prices push lower again, support could be found at $0.80 and $0.69. On the upside, immediate resistance lies at $1.20 and $1.28.
XRP/USD has rebounded above $1.00 after declining to lows of $0.86. The pair continues to trade with a bearish outlook though. The technical indicators put bears in charge on the daily chart.
The downside could see XRP/USD drop to the 50 SMA ($0.82). Further targets for sellers could be at $0.77 and $0.50 before bulls bounce into the picture.
The current price level is just above the 61.8% Fib retracement level of the swing high to $1.96 near $1.03. If bulls buy the dip and swing higher, the immediate resistance is at the 50% Fib level ($1.21). Targets above $1.50 remain legitimate, with a potential bullish reversal if the price breaks above the 23.6% Fib level.
VeChain price is looking to recover above key support at $0.16 after a sell-off past the 20-day EMA ($0.21).
Although bulls are trying to purchase on the low, the 4-hour chart suggests bears are still in control. The MACD has crossed below the signal line, while the RSI remains negative.
The key price level to watch is $0.20 on the upside and $0.15 on the downside. For the former, a breakout could take prices to highs of $0.25. The contrary view would be for bears to revisit the psychological $0.10 level.